In more Southern African news, Mosothos are reacting differently to the country’s recent licence for Elon Musk’s Starlink.Â
Caught between a rock and a hard place, Lesotho granted Starlink a 10-year licence to operate in the country, letting go of its 30% local ownership criteria. This move was heavily influenced by US tariff pressure and a desire to improve the country’s ties with the US.Â
ICYMI: The US had earlier placed a 50% tariff on the country’s exports before it was paused for 90 days. That move threatened to cut over 12,000 factory jobs.
Although Starlink’s presence will improve internet penetration in the southern African country, civil watchdog groups are unsatisfied with the terms of the deal.
Section Two, for instance, isn’t buying the pro-growth narrative. The group called the move “a betrayal,” citing the lack of transparency in the deal. The group worries that the country’s digital future is now entirely in foreign hands.
While Section Two’s argument may be something for the government to consider, Starlink offers a better alternative to local internet providers.Â
These local telecom operators are slower, patchy, and cash-strapped. Vodacom Lesotho, which serves more than half of the country’s population, is a big fish in a small pond. Vodacom, its parent company, prefers to invest resources in its bigger markets like South Africa and Egypt, which bring in more revenue—and with tougher competition—leaving its Lesotho business to plateau.Â
Econet Lesotho is the only other telecom competitor in the country, and it focuses on fixed-line services, having no play in the mobile broadband market. With no real threat, there’s little incentive to innovate. Starlink could change that. Musk’s space routers offer immediate reach—and this could be a lifeline for schools, clinics, and businesses in Lesotho’s remote areas.
For Lesotho, the deal’s done, the ink’s dry, Starlink’s coming, and it brings with it a much needed competition in the country’s telecom space.
